Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Stock Market Advice

Expert Stock Market Investment Advice

Lombardi Publishing was originally established in 1986 as an investment newsletter publisher offering stock market advice to its readers. Today, we publish 25 paid-for investment letters most of which provide stock market advice. Profit Confidential is our daily free e-letter that goes to all our Lombardi Financial customers and to any investor who wishes to opt-in in to receive it. Written by Lombardi Financial editors who have been offering stock market advice for year to Lombardi customers, Profit Confidential provides a macro-picture on where the stock market is headed, what sectors are hot, what sectors to avoid. Our two most recent and popular calls were telling investors to bail from stocks in 2007 and telling investors to jump back into the stock market in March of 2009. Timely stock market advice that worked well for the Profit Confidential family of readers.

Stock Market Risk Just Keeps
Climbing Higher

By for Profit Confidential

There was a stock market correction on Wednesday following a mini rally that drove some impressive upward gains in four of five sessions. I feel there is too much relaxation in the market, with traders ignoring the higher stock market risk.

Third-quarter Earnings Season—Definitely Something to Look Forward to

By for Profit Confidential

One of the stock market’s darling large-cap stocks has been Caterpillar Inc. (NYSE/CAT), up until recently. The stock hit a new record high of $116.55 around May of this year, retreated to the $95.00 per share level and fought its way back to $110.00. The stock then fell off a cliff in mid-July and is now trading between $75.00 and $80.00 a share.

Fire Sale of Stocks Could Get Bigger

By for Profit Confidential

This is not a market for the risk-adverse. Watching the key stock indices plummet over 10% in less than a week is scary and nerve-wracking. But the world is not ending. That I can say.

What These Food Stocks Are
Telling Me About the Future

By for Profit Confidential

Something different for my readers today… I’m going to talk about food. But don’t worry; in the end, I’ll relate it back to the economy and the stock market, as I eventually do with all my stories. Okay, so I’m eating out every night here in Florence. And when I look around, I see few people with a bottle of wine at their table. Wine, inItaly— isn’t it cheap here?

Stock Market: What’s Really Going on Now

By for Profit Confidential

What a day for the market yesterday. Wherever we looked, we saw a sea of deep red. Stocks got chopped. Gold was down. Bonds were down. My dear reader, you’ll read opinions here in PROFIT CONFIDENTIAL that you will not read elsewhere. (Maybe that’s why 30,000 people a month are flocking to us!). Here’s the bottom line as I see it…

The Second Recession:
What It Will Feel Like

By for Profit Confidential

Last Friday, I presented you with my seven top reasons why we should be worried about the long-term prospects for U.S. economy. Today, I’m going to shorten the time frame and tell you why I expect we will fall back into a recession soon.

Commodity Investors: What Goldman Sachs Is Likely Right About

By for Profit Confidential

Goldman Sachs is now saying that it’s time for commodity investors to take some money off the table, as the price cycle for oil, gold, corn and copper is getting tired. I agree with this view if you’re a short-term investor. Everything is looking tired in this market and stocks and commodities are most certainly due for a correction.

May 2011 Technical Outlook
for the Stock Market

By for Profit Confidential

Over the last two years, the 105% advance in the S&P 500 recovered 697 points of the 909 points lost between October 2007 and March 2009. In percentage terms, the S&P 500 so far has recovered 77% of the 909 slide.

Comparably, the NYSE Composite recovered 73% of its bear market drop. A few indices have done even better. The Dow Jones Transports, the Russell 2000, and the NASDAQ Composite ended April 2011 a fraction of a percent above their 2007 bull market highs. However, the NASDAQ still remains 45% below its 2000 all-time high.

Great Financial Results—Where Are They All?

By for Profit Confidential

Well, there’s only one way to say this—the numbers so far haven’t been that great. So far this earnings season, it’s been a mixed bag of mostly underperformance, and this isn’t a good sign for the future. It’s not that there hasn’t been decent growth in revenues and earnings as of yet; only that most big companies that have reported haven’t met consensus estimates. It’s difficult to imagine a rising equity market when big companies can’t beat the Street.

Investor Alert: S&P 500 Chart Shows Potential Decline

By for Profit Confidential

My stock market advice to you at this time is to be careful. Stock picking is about trading the right direction, but also making sure you have a defensive strategy in place should the trade turn against you.

The sentiment in the market remains bullish, as stocks continue on a nice two-year rally from the March 2009 low. The trend of the NYSE new-high/new-low (NHNL) has been edging higher, with 180 of the last 190 sessions bullish as of April 11. In the technology area, 136 of the last 148 sessions have been bullish. Yet, both the NASDAQ and NYSE turned neutral on April 12.

Utility Stocks: Their Hidden Message

By for Profit Confidential

“When in doubt, look at the charts.”

The above has been my motto for years. I believe that stocks and the stock market are leading indicators. They tell us what is going to happen with specific industries, various prices and the economy six to 12 months out.

One chart I have been studying closely this year is the Dow Jones Utilities Index. Utility stocks traditionally rise when interest rates fall and investors can get better yields off of secure utility stocks than they can get from CDs or T-bills. Similarly, when interest rates rise, utility stocks fall, as investors flee them to the rising yields of CDs, T-bills and bonds.

Stock Market: Two Biggest
Fears Getting Closer

By for Profit Confidential

The stock markets remind me of the real estate market in Toronto, Canada. While the U.S. housing market crashed, the real estate market in Toronto is as strong as it has ever been.

Great News for the Bank Stocks;
But Why I Won’t Buy Them

By for Profit Confidential

The big U.S. banks must be ecstatic.

After 100 people at the Federal Reserve ended their review of major U.S. banks, the Fed concluded that some of the largest banks in this country could increase their dividends, buy back shares and repay government loans.

Bullish Bias Towards Stock Remains, But Be Careful

By for Profit Confidential

The bias towards stocks remains bullish, as the market continues on a two-year rally from the March 2009 low. The trend of the NYSE new-high/new-low ratio has been edging higher, with 161 of the last 167 sessions flashing a bullish sign. In the technology area, 119 of the last 125 sessions have been bullish. All signs point to additional gains ahead.

Stock Market Eats Bad News for Lunch—Investors Still Buying

By for Profit Confidential

The stock market is handling the world’s two recent crises very well. The story in Libya seems far from over and Japan’s terrible tragedy is a decades-long recovery, but domestic stock prices didn’t go down that much and it’s a testament to the strength of overall market sentiment. Investors still want this market to go higher and first-quarter earnings will be the catalyst.

The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.

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